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2017 (11) TMI 1991 - ITAT AMRITSARAddition u/s 41 of the Act or u/s 68 - outstanding liabilities due towards few parties - HELD THAT:- We are of a strong conviction that the year in which the benefit from cessation or remission of trading liabilities under consideration was obtained by the assessee had been lost sight of by the CIT(A) while justifying the addition under Sec. 41(1) in the hands of the assessee for the year under consideration. We have also deliberated on the judicial pronouncements relied upon by the ld. A.R and find that the same are distinguishable on facts. We find that in the case of Sita Devi Juneja [2009 (12) TMI 34 - PUNJAB AND HARYANA HIGH COURT] the sundry creditors had confirmed the outstanding liabilities. However, unlike the facts involved in the aforesaid case before the Hon’ble High Court, in the present case the sundry creditors had themselves stated that nothing was due to them by the assessee. That in the case of Sugauli Sugar Works Pvt. Ltd. [1999 (2) TMI 5 - SUPREME COURT] the debt had become unenforceable in view of the A.O and though the assessee had unilaterally made an entry in its books of accounts, however, there was no such act on the part of the creditors. We thus are of the considered view that the case laws relied upon by the ld. A.R, being distinguishable on facts, would thus not be of any assistance to him in the backdrop of the facts of the case before us. We thus restore the matter to the file of the A.O, with a direction to readjudicate the issue after making necessary verifications as to when the aforementioned amounts had been written off by the abovementioned parties in their books of accounts, and the consequential benefit had been obtained by the assessee in terms of Sec. 41(1) - Appeal of the assessee is allowed for statistical purposes.
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